Why the UAE and Saudi Arabia Are Betting Big on AI

1st November 2025

In recent years, artificial intelligence has gone from a buzzword to a global race—and the UAE and Saudi Arabia are sprinting ahead. These two Gulf nations are investing billions into AI projects, hoping to transform their economies and become global tech leaders.

Saudi Arabia is making headlines with its jaw-dropping commitment to AI. The kingdom has pledged over $130 billion to build data centres, develop AI infrastructure, and attract partnerships with major tech companies.

In May 2025, it launched a new firm called Humain, backed by its massive Public Investment Fund. The goal? To become the world's third-largest provider of AI infrastructure, right behind the United States and China. That’s no small ambition.

To make this happen, Saudi Arabia is building enormous data centres on both coasts of the country. These facilities are designed to serve developers across Europe, Asia, and Africa.

The kingdom is also in talks with tech giants like OpenAI, Google, Intel, and Oracle. Even Elon Musk’s AI company, xAI, is being courted to bring computing power to the region.

Meanwhile, the UAE is taking a more measured but strategic approach. It’s been investing in AI for years, focusing on areas like education, healthcare, and smart cities.

While its data centre capacity is smaller than Saudi Arabia’s, the UAE remains a strong player in AI research and deployment. It’s also navigating global tech tensions carefully, avoiding Chinese suppliers like Huawei to maintain access to advanced American chips.

So why are these countries so keen on AI? It’s all about the future. Both nations want to reduce their dependence on oil and build knowledge-based economies. AI offers a path to high-tech jobs, global influence, and long-term economic resilience.

Whether they succeed will depend not just on how much money they spend, but on how well they execute their plans.

Still, one thing is clear. That the Gulf is no longer just about oil—it’s becoming a serious contender in the world of artificial intelligence.